If you have not yet completed the tax saving work for the financial year 2022-23, then you should hurry up. Because March 31, 2023 is the last date to do it.
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If you have not yet done tax saving for the financial year 2022-23 (Tax Saving) If you have not completed the work, then you should hurry up. Because March 31, 2023 is the last date to do it. Keep in mind that if you do not invest and spend tax saving, then your tax liability will increase for the current financial year 2022-23.
Keep in mind that from the financial year 2020-21, the person will have the option to choose between old or existing and new tax system. Individuals can avail tax exemptions such as House Rent Allowance (HRA), Leave Travel Concession (LTC) and Section 80C (up to a maximum of Rs 1.5 lakh in a financial year), 80D if the individual opts for the old or existing tax regime for FY 2022-23 (Medical Policy Premium), 80E (Premium on Education Loan) etc. can be claimed.
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Let us take a look at how much your tax liability will increase if you do not invest in tax saving schemes. Suppose your total income in the financial year is Rs 10 lakh and you have not been able to invest Rs 1.5 lakh under section 80C, then your tax liability is Rs 1.17 lakh. If you invest Rs 1.5 lakh in a tax saving scheme, then the tax liability will be Rs 1,06,600. That means there will be a difference of Rs 10,400.
What you should do?
If you have completed tax saving work till now, then some online options are available for you, such as five year bank fixed deposit, prepayment of home loan, PPF, ELSS scheme of mutual funds etc. If you are running short of funds due to which you have not been able to invest in tax saving schemes on time, there are certain expenses on which you can claim deduction under the Income Tax Act. These include children’s tuition fees, home loan principal repayment. Apart from this, the benefit of tax saving is also available on the payment of interest on the home loan.
Since March 31 is the last day of the financial year, make sure that you have invested the minimum amount in tax saving schemes like Public Provident Fund etc. If the minimum amount is not deposited, the account will be closed.
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